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Blockchain For Dummies

Tiana Laurence

ISBN: 978-1-119-36559-4 June 2017 240 Pages

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Description

Find out what Blockchain is, how it works, and what it can do for you

Blockchain is the technology behind Bitcoin, the revolutionary 'virtual currency' that's changing the way people do business. While Bitcoin has enjoyed some well-deserved hype, Blockchain may be Bitcoin's most vital legacy. Blockchain For Dummies is the ideal starting place for business pros looking to gain a better understanding of what Blockchain is, how it can improve the integrity of their data, and how it can work to fundamentally change their business and enhance their data security.

Blockchain For Dummies covers the essential things you need to know about this exciting technology's promise of revolutionizing financial transactions, data security, and information integrity. The book covers the technologies behind Blockchain, introduces a variety of existing Blockchain solutions, and even walks you through creating a small but working Blockchain-based application.

Blockchain holds the promise to revolutionize a wide variety of businesses. Get in the know about Blockchain now with Blockchain For Dummies and be ready to make the changes to business that your colleagues and competitors will later wish they'd done. Discover ten ways Blockchain can change business

  • Find out how to apply a Blockchain solution
  • See how to make data more secure
  • Learn how to work with vendors

Filled with vital information and tips on how this paradigm-changing technology can transform your business for the better, this book will not only show you Blockchain's full potential, but your own as well!

Introduction 1

About This Book 1

Foolish Assumptions 2

Icons Used in This Book 2

Beyond the Book 3

Where to Go from Here 3

Part 1: Getting Started with Blockchain 5

Chapter 1: Introducing Blockchain 7

Beginning at the Beginning: What Blockchains Are 7

What blockchains do 8

Why blockchains matter 9

The Structure of Blockchains 10

Blockchain Applications 11

The Blockchain Life Cycle 11

Consensus: The Driving Force of Blockchains 12

Blockchains in Use 14

Current blockchain uses 14

Future blockchain applications 15

Chapter 2: Picking a Blockchain 17

Where Blockchains Add Substance 17

Determining your needs 18

Defining your goal 19

Choosing a Solution 19

Drawing a blockchain decision tree 21

Making a plan 22

Chapter 3: Getting Your Hands on Blockchain 25

Diving into the Bitcoin Blockchain 25

Creating your first Bitcoin wallet 26

Creating a second Bitcoin wallet 27

Generating a Bitcoin vanity address 27

Transferring your vanity address 28

Making an entry into the Bitcoin blockchain 29

Reading a blockchain entry in Bitcoin 29

Using Smart Contracts with Bitcoin 30

Building your first smart bond 31

Checking the status of your contract 33

Building a Private Blockchain with Docker and Ethereum 34

Preparing your computer 34

Building your blockchain 36

Part 2: Developing Your Knowledge 39

Chapter 4: Beholding the Bitcoin Blockchain 41

Getting a Brief History of the Bitcoin Blockchain 42

Debunking Some Common Bitcoin Misconceptions 45

Bitcoin: The New Wild West 47

Fake sites 47

No, you first! 47

Get-rich-quick schemes 48

Mining for Bitcoins 48

Making Your First Paper Wallet 49

Chapter 5: Encountering the Ethereum Blockchain 51

Exploring the Brief History of Ethereum 52

Ethereum: The Open-Source World Wide Computer 53

Decentralized applications: Welcome to the future 54

The power of decentralized autonomous organizations 54

Hacking a Blockchain 57

Understanding smart contracts 58

Discovering the cryptocurrency Ether 58

Getting Up and Running on Ethereum 59

Mining for ether 59

Setting up your Ethereum wallet 60

Building Your First Decentralized Autonomous Organization 60

Test net and congress 61

Governance and voting 62

Uncovering the Future of DAOs 63

Putting money in a DAO 63

Building smarter smart contracts 64

Finding bugs in the system 64

Chapter 6: Regarding the Ripple Blockchain 65

Getting a Brief History of the Ripple Blockchain 66

Ripple: It’s All About Trust 67

Seeing How Ripple Differs from Other Blockchains 68

Unleashing the Full Power of Ripple 71

Exercising Caution with Ripple 72

Chapter 7: Finding the Factom Blockchain 75

A Matter of Trust 76

The purpose of the Factom blockchain: Publishing anything 77

Incentives of federation 78

Building on Factom 81

Authenticating documents and building identities using APIs 81

Getting to know the Factoid: Not a normal token 81

Anchoring your application 82

Publishing on Factom 82

Building transparency in the mortgage industry 84

Verifying physical documents: dLoc with Factom 86

Chapter 8: Digging into DigiByte 89

Getting Familiar with DigiByte: The Fast Blockchain 90

Mining on DigiByte 91

Signing Documents on DigiByte’s DiguSign 94

Earning DigiBytes While Gaming 95

Part 3: Powerful Blockchain Platforms 97

Chapter 9: Getting Your Hands on Hyperledger 99

Getting to Know Hyperledger: Dreams of a Hyper Future 100

Focusing on Fabric 101

Building your system in Fabric 102

Diving into chaincode development 102

Investigating the Iroha Project 104

Introducing Sumeragi: The new consensus algorithm 104

Developing mobile apps 105

Diving into Sawtooth Lake 106

Exploring the consensus algorithm: Proof of Elapsed Time 107

Deploying Sawtooth 107

Chapter 10: Applying Microsoft Azure 109

Bletchley: The Modular Blockchain Fabric 109

Cryptlets for encrypting and authenticating 111

Utility and Contract Cryptlets and CrytoDelegates 112

Building in the Azure Ecosystem 113

Getting Started with Chain on Azure 114

Installing Chain’s distributed ledger 115

Creating your own private network 115

Using financial services on Azure’s Chain 116

Deploying Blockchain Tools on Azure 116

Exploring Ethereum on Azure 116

Cortana: Your analytics machine learning tool 117

Visualizing your data with Power BI 117

Managing your access on Azure’s Active Directory 118

Chapter 11: Getting Busy on IBM Bluemix 119

Business Blockchain on Bluemix 119

Your isolated environment 120

Bluemix use cases 121

Watson’s Smart Blockchain 122

Building Your Starter Network on Big Blue 124

Part 4: Industry Impacts 129

Chapter 12: Financial Technology 131

Hauling Out Your Crystal Ball: Future Banking Trends 131

Moving money faster: Across borders and more 133

Creating permanent history 134

Going International: Global Financial Products 135

Border-free payroll 136

Faster and better trade 137

Guaranteed payments 138

Micropayments: The new nature of transactions 138

Squeezing Out Fraud 139

Chapter 13: Real Estate 141

Eliminating Title Insurance 141

Protected industries 142

Consumers and Fannie Mae 144

Mortgages in the Blockchain World 144

Reducing your origination costs 145

Knowing your last-known document 145

Forecasting Regional Trends 146

The United States and Europe: Infrastructure congestion 147

China: First out of the gate 148

The developing world: Roadblocks to blockchain 148

Chapter 14: Insurance 151

Precisely Tailoring Coverage 151

Insuring the individual 152

The new world of micro insurance 153

Witnessing for You: The Internet of Things 154

IoT projects in insurance 155

Implications of actionable big data 155

Taking Out the Third Party in Insurance 156

Decentralized security 156

Crowdfunded coverage 156

The implications of DAO insurance 157

Chapter 15: Government 159

The Smart Cities of Asia 159

Singapore satellite cities in India 161

China’s big data problem 162

The Battle for the Financial Capital of the World 163

London’s early foresight 163

The regulatory sandbox of Singapore 164

The Dubai 2020 initiative 165

Bitlicense regulatory framework: New York City 167

Securing the World’s Borders 168

The Department of Homeland Security and the identity of things 168

Passports of the future 169

The new feeder document 169

Chapter 16: Other Industries 171

Lean Governments 171

Singapore’s Smart Nation project 172

Estonia’s e-Residency 173

Better notarization in China 174

The Trust Layer for the Internet 174

Spam-free email 175

Owning your identity 176

Oracle of the Blockchain 176

Trusted authorship 177

Intellectual property rights 177

Part 5: The Part of Tens 179

Chapter 17: Ten Free Blockchain Resources 181

Factom University 181

Ethereum 101 182

Build on Ripple 182

Programmable Money by Ripple 182

DigiKnow 183

Blockchain University 183

Bitcoin Core 183

Blockchain Alliance 183

Multichain Blog 184

HiveMind 184

Chapter 18: The Ten Rules to Never Break on the Blockchain 185

Don’t Use Cryptocurrency or Blockchains to Skirt the Law 185

Keep Your Contracts as Simple as Possible 186

Publish with Great Caution 187

Back Up, Back Up, Back Up Your Private Keys 187

Triple-Check the Address Before Sending Currency 189

Take Care When Using Exchanges 189

Beware Wi-Fi 190

Identify Your Blockchain Dev 190

Don’t Get Suckered 190

Don’t Trade Tokens Unless You Know What You’re Doing 191

Chapter 19: Ten Top Blockchain Projects 193

The R3 Consortium 193

T ZERO: Overstocking the Stock Market 194

Blockstream’s Distributed Systems 195

OpenBazaar’s Blockchain 196

Code Valley: Find Your Coder 196

Bitfury’s Digital Assets 197

Any Coin Can ShapeShift 198

Machine-Payable Apps on 21 198

Anonymous Transactions on Dash 199

ConsenSys: Decentralized Applications 200

Index 201